The Increase of Technology-Aided Financial Crimes
The total dollar amount lost to financial crimes carried out by the assistance of technology is skyrocketing every year. In fact, between 2023 and 2025, global illicit financial crime increased by almost 20%, reaching $4.4 trillion last year! Much of that increase is due to the influx of advancements in artificial intelligence (AI).
The types of financial crimes that criminals use AI to commit vary, however the strategy behind successfully carrying out the crimes usually includes:
- Automation of attacks: AI-powered tools enable the automation of phishing campaigns, creating highly convincing messages at scale. AI also allows malware to adapt dynamically to evade real-time detection. AI is easy to use and beneficial to criminals who may not be well-versed in committing crimes; AI actually teaches them how to commit fraud.
- Deepfakes and synthetic media: Impersonating celebrities or highly influential business leaders through AI generated images and/or voices makes these types of crimes believable and convincing. AI can also be used to produce fake identities using small amounts of personal information available online to open fake bank accounts, credit cards, etc.
- Enhanced cyberattacks: Ransomware, a type of malware that encrypts a victim’s data and demands a ransom for its release, has become more formidable with the integration of AI. Cyber attacks are almost undetectable, and executed much faster using AI, making them harder to find and stop. AI also uses machine learning algorithms to pinpoint vulnerabilities in security systems, making it easier to target the most valuable information.
Beyond a doubt, AI has made committing financial crimes easier, but it has also made great progress in combatting those same types of crimes. AI can help organizations identify cyber threats faster and more accurately than ever before.
AI In Financial Crime Investigations
The largest advantage of artificial intelligence in fighting financial crimes is its ability to process threats in real time versus reacting to crimes that have already been carried out. AI helps to quell financial crimes by using machine learning and behavioral algorithms to review massive amounts of data at a time, in real time, while searching for inconsistencies or patterns typical of criminals. Using an AI generated security platform is far more efficient and faster than any human analyst doing the work.
When it comes to investigating financial crimes, AI is highly reliable and accurate. Those investigating financial crimes turn to AI for assistance with:
- Transaction monitoring: As mentioned above, AI analyzes tons of information to monitor for suspicious activity. This includes analyzing transaction volume, velocity, and value to detect unusual patterns that might indicate money laundering.
- Network & Link Analysis: AI sifts through information to find patterns and commonalities in IP addresses, emails, and even transactions that may uncover criminal networks. For instance, if many new bank accounts opened throughout the country share the same email address, AI will flag those data points as suspicious prompting further review.
- Investigative Reporting: Generative AI learns patterns in data sets and uses those learnings to generate original output. This can save the time it takes a person to collect and review numerous documents to produce a review of financial crime.
- Online Platform Monitoring: AI can be used in social media and other online platforms to detect language that includes terminology used in financial crimes.
Artificial intelligence is always evolving and becoming better at what it is tasked to do. Its data processing speed is far greater than any human can achieve, making it an effective tool for investigators facing the review of a lot of data. Combatting financial crime is one strength of AI as it identifies inconsistencies early and alerts investigators to possible crimes before they fully occur.
Financial Crime Investigations
If you are facing a financial crime investigation, you should secure the assistance of a qualified, experienced criminal defense attorney like those at the Law Offices of Robert J. DeGroot. Do not try to hide or get rid of any data, and let your legal team answer questions for you. The team at the Law Offices of Robert J. DeGroot understands the link between technology and the law and can help defend your case.
Reach out to the Law Offices of Robert J. DeGroot today if you are facing financial crimes charges.
